MKR 0.00% 6.9¢ manuka resources ltd.

I never said they could "pay off their loan" in the next few...

  1. 3,102 Posts.
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    I never said they could "pay off their loan" in the next few months given the numbers available, so I am not sure why you headed down that direction. If they have enough material for 3-4 years at current rates they will easily pay off all their debts within a year or 2. Will that happen? Hard to say if they have 3+ years of material at that grade they are currently processing. I don't really have enough data to form a solid opinion on it, and even though people like @Gratton44 suggested there was a lot of gold available they also seem surprised by the numbers so who is to say? If one were to look into the history of Mt Boppy, and all the findings over time in the region one could reasonably expect at least those numbers for some time in old workings, but concrete data will have to come from MKR.

    I do know that a few licenses that MKR currently hold do have good gold on them, that are currently not known resources. So if the company has no idea they have such claims it does little for the stock price until they are drilled and defined in a more accessible format for the market. They could just as easily fold and sell the licenses to another party before it is widely known.

    One feature of their major debt being defined in USD is that gold/silver are also mostly defined in USD, so even if the AUD blows out like I predicted, it isn't going to be a major concern for them provided they have gold/silver to provide to market. BRICs angling to become the world reserve currency is going to throw a bit of a hammer into the works in regards to timing, but if you are on the silver/gold as a company you are going to be insulated from all that mess.


 
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